HOUSE OF REPRESENTATIVES

H.B. NO.

1378

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the state of hawaii endowment fund.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to enhance and broaden the purposes of the State of Hawaii endowment fund, which is a separate fund of the Honolulu symphony trust.  The legislature finds that the income and capital gains from the endowment fund should also be used for music production, performances, and music education, in addition to the current limited purpose of the production of music by an Oahu-based symphony orchestra.

     The Honolulu symphony endowment fund was created in 1987 to be used to fund the Honolulu symphony operations.  In 1988, the name of the fund was changed to the State of Hawaii endowment fund.  In 1995, a portion of the income and capital gains from the fund was transferred to the state foundation on culture and the arts, to be used for the production of music by an Oahu-based symphony orchestra as determined by the state foundation on culture and the arts.

     The legislature notes that, to date, the state foundation on culture and the arts has not played any significant role in the management and administration of the fund.  More importantly, as of December 2010, the Honolulu symphony society filed for Chapter 7 bankruptcy.  Consequently, this Act also clarifies that the endowment fund shall be administered by the department of accounting and general services.

     SECTION 2.  Section 40-88, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There shall be established [as a separate fund of the Honolulu symphony trust created by the trust agreement dated December 5, 1986,] a fund to be known as the State of Hawaii endowment fund[.], which shall be administered by the department of accounting and general services.  The income and capital gains from the [$2,000,000 contributed by the State of Hawaii shall be transferred on a quarterly basis to the state foundation on culture and the arts, performing and visual arts events private contribution account to] fund shall be used for [the production of music by an Oahu-based symphony orchestra as determined by the state foundation on culture and the arts.] cultivating music production, performances, and music education throughout the State.  The State of Hawaii endowment fund shall be subject to the restrictions that:

     (1)  No part of the principal amount contributed to the fund by the State or by matching grants shall be used for operations of the Honolulu symphony;

     (2)  Income and capital gains from the fund shall not be distributed for use in the operations of the Honolulu symphony during any period that the value of the fund shall be less than the principal amounts contributed to the fund; and

     (3)  The amounts contributed to the fund by the State shall revert to the State to the extent that matching or other conditions to the grant of the funds are not met, and the fund also shall be subject to additional restrictions as may be imposed with respect to transfers of funds in future legislation appropriating sums to be contributed to the fund."

     SECTION 3.  Act 97, Session Laws of Hawaii 2006, is amended by amending section 2 to read as follows:

     "SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $4,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 to be deposited into the State of Hawaii endowment fund, from which the income and capital gains shall be used for [the production of music by an Oahu-based symphony orchestra;] cultivating music production, performances, and music education throughout the State; provided that the funds appropriated in this section are matched, dollar-for-dollar, by private funds[.] or pledges pursuant to section 40-88, Hawaii Revised Statutes.

     The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 



 

Report Title:

State of Hawaii Endowment Fund; DAGS

 

Description:

Broadens the purposes of the State of Hawaii endowment fund to encompass the cultivation of music production, performances, and music education.  Clarifies that the department of accounting and general services shall administer the endowment fund.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.